In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the reason that Americans are so angry and the role played by former President Bill Clinton on creating the conditions for their anger. In the second half, Max talks to Ellen Brown, author of “Web of Debt,” about the populist revolution, from Bernie and beyond, and about the citadel being breached as Congress taps the Fed for infrastructure spend.
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss bitcoin converts and the dual risk of deflation and inflation for holders of euros. Max asks “how is the euro a store of value when the ECB can just TAKE it from you during a ‘bail-in?’ In the second half, Max interviews Peter Todd, Chief Scientist & Architect of Dark Wallet and ZeroCash to discuss Dark Wallet, cryptocurrencies and a government sponsored 51% attack on the bitcoin community.
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We discuss bitcoin converts and the dual risk of deflation and inflation for holders of euros. Max asks “how is the euro a store of value when the ECB can just TAKE it from you during a ‘bail-in?’ In the second half, Max interviews Peter Todd, Chief Scientist & Architect of Dark Wallet and ZeroCash to discuss Dark Wallet, cryptocurrencies and a government sponsored 51% attack on the bitcoin community.
We noted Friday:
Barclays and other large banks – including Citigroup, HSBC, J.P. Morgan Chase, Lloyds, Bank of America, UBS, Royal Bank of Scotland– manipulated the world’s primary interest rate (Libor) which virtually every adjustable-rate investment globally is pegged to.
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That means they manipulated a good chunk of the world economy.
We actually understated the impact of the Libor scandal.
Specifically, more than $800 trillion dollars worth of investments are pegged to the Libor rate. As the Wall Street Journal reports today:
More than $800 trillion in securities and loans are linked to the Libor, including $350 trillion in swaps and $10 trillion in loans.
Remember, the derivatives market is approximately $1,200 trillion dollars. Interest rate derivatives comprise the lion’s share of all derivatives, and could blow up and take down the entire financial system.
The largest interest rate derivatives sellers include Barclays, Deutsche Bank, Goldman and JP Morgan … many of which are being exposed for manipulating Libor.
They have been manipulating Libor on a daily basis since 2005.
They are still part of the group of banks which sets Libor every day, and none have been criminally prosecuted.
They have received a light slap on the wrist from regulators, which – as nobel economist Joe Stiglitz points out – is just the cost of doing business when fraud is the business model.
Indeed – as Bloomberg notes – they’re probably still manipulating the rate:
The U.K. bankers and regulators charged with reviewing Libor in the wake of regulatory probes are resisting calls to overhaul the rate because structural changes risk invalidating trillions of dollars of contracts.